TITLE:
An Evaluation of the Effect of Digital Banking Channels on the Performance of Commercial Banks in Zambia
AUTHORS:
Leonard Makumba, Jackson Phiri
KEYWORDS:
Digital Banking, Performance Efficiency, Effectiveness
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.4,
July
19,
2023
ABSTRACT: Customers who use digital banking can conduct
transactions through a variety of secure digital channels while the bank
handles data security, related risk reduction, and regulatory matters. This is
accomplished by combining the newest digital technologies online and mobile
banking services such as analytics, social media, creative payment methods, and
mobile technology and exceeding user expectations for convenience and
experience. This study aimed at evaluating the effect of digital banking
channels on the performance of commercial banks with prime focus on First
National Bank Zambia. A quantitative research
design was used, and data was collected from a sample of 279 employees with the
aid of purposive sampling technique. Multiple hierarchical regression and
correlation statistics were used to analyse the data collected through the
statistical package for social sciences (SPSS). The correlation and regression
analysis result showed that Mobile Banking, Internet card banking, electronic
banking and telephone banking have a positive correlation with commercial bank
performance in terms of profitability, performance efficiency and
effectiveness. The results from the regression analysis revealed that only
Internet Banking (β = 0.61, p value =
0.000) and electronic card banking (β = 0.36, p value = 0.000) had a significant effect on commercial bank
performance and the analysis indicates that approximately 59.1% of the variance
of the business performance can be accounted for by the linear combination of
internet banking and Electronic Banking.